MANILA -- The Board of Investments (BOI) has registered the Ayala Group’s eco-tourism project in El Nido, Palawan as an inclusive business (IB) activity under the current Investment Priorities Plan (IPP).
Econorth Resort Ventures, Inc., a unit of Ayala Land Hotel and Resort Corp., invested PHP1.7 billion to develop Seda Lio Resort -- an ecologically sustainable tourism estate within the 325-hectare property of Lio Tourism Estate in El Nido.
The project has qualified as an IB project as it engages the local community in its business operations.
One of the BOI's criteria for a project to qualify as an IB activity is that the business shall source at least 25 percent of total cost of services from micro and small entrepreneurs (MSEs).
At least 25 direct employment shall be allocated to individuals from the marginalized sector with at least 30 percent are allotted for women.
Firms seeking for incentives through the IB model are obliged to give technical assistance, capacity building, and access to finance to MSEs.
According to Econorth, business operation costs of Seda Lio Resort is projected at PHP243.8 million annually. By the third year of its operation, the firm will source PHP60 million of its total cost in services to local MSEs.
“This development is a boost to Palawan not only as one of the country’s top tourist destinations but also as being at the forefront of promoting a healthier environment and having an inclusive business model wherein the community is engaged in a sustainable manner,” said Trade Undersecretary and BOI Managing Head Ceferino Rodolfo.
The 153-guestroom resort will start its operation in the third quarter of the year.
The Philippines has been in the forefront of adopting IB models in the region.
One way to encourage businesses into adopting the IB model is through extending fiscal incentives such as providing income tax holidays of up to five years, he explained.
An IB model engages low-income communities to the supply chain of large entrepreneurs as partners, suppliers, customers, or employees.
These activities are also in line with the government’s push to reduce poverty and achieve inclusive growth. (PNA)
